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‘If oil continues decline, so will power rates’
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Posted on Nov 15 2008
As long as the price of crude oil continues to decrease, power rates should also continue to drop, Antonio Muña, executive director of the Commonwealth Utilities Corp. said this week.
The price of oil has plunged below $60 a barrel, a huge drop from the record $147.27 set on July 11. The decrease has shown in power bills. CUC lowered the electric rate by 6.7 cents per kWh from 33.7 in October to 27 cents this month.
“It’s really given us relief in that area,” Muna said. “For the first time in a long time we’re down below 28 cents.”
November’s rate of 27 cents is the lowest its been since May, when CUC more than doubled the rates for residential customers. The all-time high rate of 41.3 cents was set in July and August.
Mobil sets the oil prices once a month, when the tanker arrives on Saipan, Muña said.
“So, basically at the time they deliver the fuel, the price is now ready to be set on a 30-day period from last time they brought in fuel,” he said.
If the price of oil remained low during those 30 days, the buying price will remain low but if there were peaks and valleys, that will affect the buying price, he added.
